Economics, Econometrics and Finance
8 years ago

Credit Default Swaps Pose Systemic Risk to Financial Market Stability.

Procedia - Social and Behavioral Sciences
The Role of Credit Default Swaps on Financial Market Stability
Nuray Terzi, Korkmaz Uluçay

Paper Summary

Credit default swaps (CDS) are financial tools that can transfer credit risk, but their large size and complexity may pose a risk to financial stability. The impact of CDS on financial markets depends on market mechanisms and regulations.

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